Bank of America's reported loss of 15% in third-quarter profits, mainly due to losses in residual value in its automobile leasing portfolio, does not call into question the soundness of outstanding auto-lease securitizations just yet. But observers are carefully watching the industry.

Because residual loss (the value of a car being worth less than expected at the end of a lease term) is not taken into effect until the lease term has been completed, it can be difficult to foresee problems in outstanding securitizations.

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